Why NigComSat 1R must be sold, by Minister

The Federal Government has said the sale of Nigeria’s satellite firm, NigComsat 1 R, has become inevitable because it has become a huge drainpipe on government’s scarce resources.

Commmunication Technology Minister, Dr. Omobola Jonhson who spoke during the Fourth Industry ICT Stakeholders Forum by the Commmunication Technology Ministry in Lagos at the weekend, said the satellite firm would be sold to private investors for more efficient management.

According to her, the firm would be sold in a way government would be able to get good value from it. She said the management of the firm is currently working to increase its commercial value.

She said: “NigComSat 1R has increased its commercial value through the generation of revenue for government by leasing of 5KU transponders, C-Band, broadband sale and the leasing of Direct to Home (DTH) platform to private strategic partner.

“Ongoing projects are being designed that will increase revenues from this asset. The lease of KA transponders is also planned for Q1 2015.”

Dr. Johnson said the satellite firm made N3,654,955.04 in 2012 while it generated N263,753,354.34 and N648, 866,688 in 2013 and 2014 respectively, showing a gradual improvement in performance.

The improved performance, however, does not justify the money it gulps from government’s purse.

She said: “NigComSat 1R takes a huge portion of our budget and I don’t think there is any minister that will not support its privatisation for the country to make more money.”

Responding to questions on continuity, the minister said as pioneer minster of ministry, she had, with other stakeholders, done a lot to improve the fortunes of the ICT sector to ensure its sectoral addition to the nation’s gross domestic product is worth the while.

She said the sector has contributed above nine per cent, adding that when added to another two per cent it has enabled other sectors of the economy, the score card is good enough.

She added: “As the administration comes to an end, I will answer the question about continuity of the pragrammes for two major reasons. First, if look at what we did, I told you we had two major priorities-Connect Nigeria and Connect Nigerians, these are priorities we engage with the industry before we started doing. There several other projects so, to me, the priorities that we have are not only for the ICT sector but for the country.”